The AVOD services market allows users to stream television and film content for free in exchange for advertising. These services utilize an advertising-based video-on-demand (AVOD) model to generate revenue through advertisements embedded within programming. The burgeoning streaming market has led to increased demand for alternative options to subscription-based services. AVOD services offer content libraries and on-demand access without monthly subscriptions, targeting cost-conscious consumers and casual viewers. Popular platforms aggregate a variety of TV shows, movies, news, live sports and more through partnerships with media companies and content producers. The unique ad-supported model has proven effective in monetizing large audiences and gained significant traction in recent years.

The Global AVOD Services Market is estimated to be valued at US$ 28.09 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period from 2023 to 2030.

Key Takeaways

Key players operating in the AVOD services market are YouTube (Google), Hulu (Disney), copyright (NBCUniversal), Tubi (Fox Corporation), Pluto TV (ViacomCBS), IMDb TV (Amazon), Roku Channel (Roku), Crackle (Chicken Soup for the Soul Entertainment), Xumo (Comcast), Vudu (Walmart), The Roku Channel (Roku), Popcornflix (Screen Media Ventures), MX Player (Times Internet), Voot (ViacomCBS). YouTube has established itself as the dominant platform, capitalizing on a vast library of user-uploaded content. Hulu has also seen significant growth through its hybrid SVOD-AVOD model.

The growing demand for streaming media is propelling the AVOD market forward. As digital video consumption rises, advertisers are allocating greater budgets to online channels to reach massive audiences. Streaming allows for targeted, high-impact ads optimized for mobile and digital platforms. This has boosted the efficacy of advertising on AVOD services.

Major companies are further expanding the global footprint of their AVOD offerings. International expansion into markets like Europe, Asia Pacific and Latin America is underway. Regionalization of content libraries aims to provide localized programming and cater to diverse audiences worldwide. Content localization will be a key driver of global AVOD market growth in the forecast period.

Market drivers: The rise of cord-cutting and demand for cheaper alternative to subscription plans is driving the AVOD market. As traditional pay-TV loses prominence to streaming, billions have been shifted to digital channels. AVOD provides advertisers access to these massive digital audiences in a cost-effective manner. Their ability to offer competitive ad loads with powerful targeting has made AVOD an attractive option for advertisers compared to traditional TV. This has ensured a steady flow of ad spend and investments into these platforms.

Impact of geopolitical situation on market growth
The current geopolitical instability such as the ongoing Russia-Ukraine war and rising geopolitical tensions between some countries is impacting the growth of the AVOD services market. The war has disrupted many businesses and supply chains in the region. Some companies are pulling out of Russia which may temporarily impact the market. However, geopolitical conflicts and restrictions often increase demand for online streaming as it provides an alternate source of entertainment and news. Platforms are also localizing content for different regions to cater to this demand. Growth of digital media consumption during the pandemic has established streaming as a major source of entertainment. For future growth, companies need to focus on expanding into new regions, localizing content, building strategic partnerships and offering competitive and innovative services despite any geopolitical challenges.

Geographical regions where market in terms of value is concentrated
Currently, North America accounts for the largest share of the global AVOD services market in terms of value, followed by Europe and Asia Pacific. The US and copyright are the major revenue generators for ad-supported streaming platforms in North America due to high internet and smartphone penetration along with widespread adoption of streaming services. Platforms are investing heavily in producing original and licensed content to attract subscribers in this region. Europe is also a significant market led by countries like the UK, Germany and France where demand for online streaming services is rising steadily every year.

Fastest growing region for AVOD services market
The Asia Pacific region is poised to become the fastest growing regional market for AVOD services during the forecast period. Rapid digitization, growing middle class, increasing disposable incomes and preferences of young population for digital content are driving the market in Asia Pacific countries like India, China, Japan and South Korea. Localizing interfaces and offering region-specific content to cater to different language preferences will be critical for platforms to capitalize on this high growth potential. Partnerships with telecom operators and integrated billing may help platforms overcome infrastructure challenges and accelerate penetration in rural markets of developing nations.

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials,  etc

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it